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Apple on Monday landed a $1tn valuation after analysts at Drexel Hamilton boosted their price target on the stock.

Brian J White at Drexel Hamilton maintained his “buy” rating on the stock and boosted its price target to $202 a share — the highest on Wall Street — from $185 previously. That values the iPhone maker at more than $1tn based on its outstanding share count of 5.2bn shares on May 8.

Apple’s shares were up as much as 2.9 per cent to an all-time high of $153.25 on Monday.

Sentiment on Apple soured earlier this month after chief executive Tim Cook blamed leaks about the next iPhone model for a 1 per cent drop in sales of its most popular product last quarter. But Mr White argues that following the first-ever drop in iPhone sales in 2016, the market became “overly negative” on Apple, which currently has just 14.6 per cent of the global smartphone market share, according to IDC data. That leaves it plenty of room for growth.

Moreover, he notes that Apple has “proven its resilience through its unique ability to develop hardware, software and services that work seamlessly together. We believe this positions Apple very well to capitalise on the trend toward more ‘things’ becoming a computer.”

Looking ahead, he notes that Apple’s quarterly results will be less important as investors focus on the iPhone 8 this fall, capital distribution plans, “depressed valuation” and possible innovations.

It might seem an odd thing to say about the world’s largest company, but Mr White writes: “We believe Apple remains among the most underappreciated stocks in the world.”

This isn’t the first time Apple has earned a $1tn valuation call — Cantor Fitzgerald was the first to do so when it gave the company a $185 a share price target back in 2015. However, Drexel Hamilton is the only one brokerage on Wall Street at present to give Apple a $1tn market valuation.

BTIG is close behind with a price target of $184, according to Bloomberg data.